Co-optimizing energy and ancillary services in RTO markets: Field experience and lessons learned

By early 2009, roughly 60 % of the US capacity will operate in RTO markets. This panel session will discuss why some RTOs in the US (MISO, CAISO, ERCOT, ISO New England, and NYISO) are starting to use co-optimization to simultaneously clear energy and ancillary-service markets. The panel will address the following issues: 1. How do ancillary-service markets operate? 2. Why do RTOs implement co-optimization to clear energy and ancillary-service markets? 3. Does co-optimization produce a schedule that minimizes the total production costs for the RTO? 4. Does co-optimization produce a schedule that maximizes revenues and profits for market participants? 5. Does co-optimization produce expected prices for ancillary services? 6. Any problems with price reversal? 7. How should gencos price ancillary-service products? Cost-based or market-based? 8. Should market participants self-schedule part of their ancillary-service requirements? 9. How do RTOs deploy resources for regulation and contingency reserves? 10. Who pays for the cost of providing ancillary services?; Can traders forecast day-ahead and real-time prices for ancillary services? 11. How do RTOs handle price scarcity? 12. What strategies should be used to bid energy and ancillary-services to maximize the market benefits for your portfolio?.